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Managing: Establishing Performance Objectives

Be SMART with your Small Business

Some people establish life objectives easily, but struggle to do the same for their businesses. Companies need to act SMART, in every decision, especially those that lead or impact business direction. There are a lot of approaches to define organizational and employee objectives,Â but I recommend that you Be SMART. Consider the following criteria:
Specific:Â Â Ask before you write it what specifically is to be achieved? What actions are to be performed and what results are to be achieved through these actions? Remember that keeping objectives simple ensures they are clear and specific.
Measurable: Some objectives can be measured quantitatively; others must be measured qualitatively. What data will be used to measure/track what is achieved and is that data available to provide ongoing feedback on how the employee is doing? Those questions need to be answered before the evaluation time comes.
Accountable: A clear definition of what he or she is specifically accountable for will help reduce confusion when evaluating employee .Defining accountability will ensure a sense of urgency and purpose on the part of the employee.
Realistic: In highly efficient organizations, performance objectives ultimately link back to the company's overall strategy and business plan. Objectives should challenge employees towards continuous improvement, but should not be unrealistic or unattainable.
Time-based: an achievable time frame must be set for reaching the objective's goals. Consider assigning specific target dates for the performance objective and also for each lesser milestone linking the entire goal.
Set up employee objectives and link them to the overall business plan and over-arching strategy of the organization as a SMART decision, especially in this economy when every action counts. Organizations with many employees often have formal performance appraisal systems. Most employees in small businesses receive less feedback than they want and feel powerless to get more. It is important to have strong knowledge of peopleâs skills as well as their performance and objectives before giving feedback.
Erika Cruz, Guest BloggerView more posts by SCOREâs Guest Bloggers

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R = relevant. Is the goal really relevant to where you need to be? Or is it just something that seems like a good idea.
R = reinforcement or reward. What reward or acknoweldgment will you/employees receive for reaching the goal. Extra motivation is always handy!